GAC fends off resale value concerns after price cuts

Brand promises to reimburse all eligible customers

Brenwin Naidu Motoring editor, reporter and presenter
GAC launched in SA in 2024, with the GS3 Emzoom and Emkoo.
GAC launched in SA in 2024, with the GS3 Emzoom and Emkoo.
Image: Supplied

GAC Motor SA has addressed queries that recent significant price cuts would upset customers who paid full retail, in addition to impacting second-hand values.

The brand last week announced “unprecedented” price drops for its GS3 Emzoom and Emkoo models, both introduced in 2024.

According to the company, “scaled global cost reduction initiatives” enabled the reductions. Leslie Ramsoomar, MD, said the firm believed consumers deserved to benefit directly from favourable forex movements.

In its press release, the brand invited its initial buyers who purchased before the price adjustment to reach out should they have concerns.

We sent a further enquiry around this, asking if the firm was of the view that its 2024 customers who purchased at full price would be aggrieved and if the move could be perceived as negatively impacting used values.

“We will ‘accommodate’ any existing client to the new price versus what they paid, we are dealing with it on a case-by-case basis,” said Bianca Naude, marketing, PR and communications manager for GAC Motor SA.

“There is a risk, as there is with any short-term promotional money, we wanted to keep a level of transparency and customer value, rather than a short-term promotional effort,” she said.

At the launch of the GS3 Emzoom in August, pricing kicked off at R469,900 for the Comfort model, R499,900 for the Executive and R549,900 for the R-Style. Following the recent decrease, this went down to R419,900, R439,900 and R489,900 respectively.

In the case of the larger Emkoo, pricing decreased by R80,000 for the Executive grade (now R519,900) and by R100,000 for the Executive Plus (now R559,900).

Sowetan Motoring approached six GAC dealerships in Johannesburg and surrounds to see if 2024 buyers would receive any cost benefits as indicated by the manufacturer.

The first salesperson we spoke to, at a branch in the northern suburbs confirmed that its buyers who purchased new vehicles at 2024 prices would be reimbursed with the difference in amount of the latest discount that applied to their model. A second agent we spoke to at a Tshwane outlet said that reimbursements for 2024 buyers may be considered.

The feedback was a bit more ambiguous from the other four retailers we contacted. Some said there would be no benefits for buyers who paid full retail in 2024, others said they were unable to answer immediately and would get back to us.

We directed this feedback to GAC Motor SA on Monday.

“Following last week's announcement, our goal is to ensure that both our business partners and network are fully informed about the process,” said Naude.

“This week, we’re meeting with our dealer network to reinforce the information and ensure full clarity across the board. We’ve already reimbursed three customers and are committed to reimbursing all eligible customers from 2024.”


GAC launched in SA in 2024, with the GS3 Emzoom and Emkoo.
GAC launched in SA in 2024, with the GS3 Emzoom and Emkoo.
Image: Supplied

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